The Villas at Falls Run Condominium Board of Directors

The 16^th working meeting of The Villas at Falls Run Condominium Board of Directors was held on Monday, June 26^th at 1:00 PM at the Center. All board members except Vice President, Joan Bitely were present. Also attending were Dianna Martin, Villa representative from Koger Management Group, Nancy Arnn, the Master Board liaison to the Villas and 1 guest, Allen W. Burden, member of the Building Committee.

I.                   Call to Order

President, Paul Niemi called the meeting to order at 1:07PM.

II.                 Approval of Minutes

The minutes from the meeting of June 12^th meeting were presented. Motion made to accept, 2^nd. Under discussion, there was 1 minor objection to on street parking as stated. Upon clarification, the minutes were unanimously approved.

III.             Management Report

A.)  Introduction of Ms. Dianna Martin, Koger Management Group

Dianna distributed information on insurance, and the requested budget comparison report.

B.)   Accepted Koger Management Agreement

Management Agreement is still in the hands of Jeff Koger. Revisions to match the budget are still needed.

C.)  Status of Financial Audit for CY 2005 and Related Tax Filings

Dianna has no information on this. She also has no information on status of Goldkang and we may need to ask for extension.

D.)  Budget Comparison Report for Actual Expenditures thru May 2006.

Report seems accurate. No dispute.

E.)   Fire Sprinkler Back-Flow Value Inspection Progress Report

Messages have been left for Burt Frazer on status of inspections. One test has failed and required repairs.

F.)   Attachments Related to Mason & Mason Reserve Proposal

A letter is expected from Mason & Mason regarding the Reserve Study proposal and the missing attachments.

G.)  Clarification of Master Assessment Transfer Back-log

No dispute.

H.)  Resolution of Outstanding Snow Removal Charges

This is on going. Dianna will follow up.

I.)     Villas Census Survey Progress Report

Second mailing as produced 170 census surveys received with 29 more yet to come in.

J.)     Accord Statement/Schedule of Values For the Villas Condominium Insurance-Signed Copy.

A set of 4 pages signed by Dennis Ouellette was provided. This is not the set that Paul signed previously. Follow-up needed.

IV.              President’s Report

A.)  Resident’s Letter Regarding Lawn Irrigation System

Resident is dissatisfied that not enough has been applied to trees and shrubs. Sprinkler system is only on about 20-30 minutes per allocated application.

B.)   Resident’s Letter of Del Webb Support to Reimburse Resident’s for Watering Common Areas.

This does not apply to the Villa/Del Webb responsibility. Hugh will be getting clarification from Del Webb on this issue.

Additional Notes –

The gates on Legend Dr. still have not been verified.

The quarterly adjusted code number for the Middlebrook and Legend gates should be appearing on our next Koger statement.

V.                 Committee Reports

A.)  Finance – Nancy Garner

We have a certificate of deposit for $25,000. A total of $75,000 now invested. One single account of $200,000 has not drawn any interest to date. We have only been FDIC insured to $100,000. We had not been advised of this.

Mr. Dick Poole, a representative from Smith Barney, has met with the Finance Committee and the committee wished to employ Smith Barney to handle the investments.

Motion made to employ Smith Barney, 2^nd and unanimously approved.

Next meeting of the Finance Committee will be July 19^th, 2006

Committee would like to interview other Management Companies, possibly 3 along with Koger for the next upcoming year.

B.)   Communications – Hugh Muir

Last meeting was June 15^th, 2006. Sherrie Burke has been developing the Villa website link. A photo of the Legend entrance will be used as the opening page. Nancy Bruns will write a summary of each Open Board meeting for publication in the Update.

A motion was made to designate a 90-day period to post the approved minutes of the previous working session of the board and also post the draft minutes of the previous Open Forum meeting, Hugh 2^nd, unanimously approved.

Hugh now moves that a summary of each current board meeting be included with each set of minutes, 2^nd. Did not pass.

The next issue of the Update will be published as soon as possible after the July 5^th meeting.

C.)  Covenant/Villa Handbook – Joan Bitely

The draft copy of the guidebook will be reviewed carefully. Format of guidebook will be decided along with recommendation and quote for printing by next meeting July 17^th.2006. Violation letters will be going out as a result of Modification committee recommendations.

D.)  Landscape – Hugh Muir

Committee met on June 2^nd, 2006.

Dick Haas reported that new trees at Legend gate area have been planted and are now dying. Erosion trucks are using the hydrant at Legend gate area, do we know who is paying for this.

Some of the shrubs and plants have exceeded 20” in height. Some trees are also showing signs of (beetle) disease. Shenandoah should be approached for pruning maintenance and insect treatment.

We should consider looking at other landscaping companies for contract renewal.

E.)   Building – Paul Niemi

Paul introduces newest member of committee, Allen Burden. He has joined the teams that have conducted inspections on 65 individual Villa units to date.

Allen provided a summary of some of the problems his team has found:

· The Jansen Unites with walkouts and sidewalks supported by retaining walls seem to have more of a problem with drop-offs along the sidewalks.

· Several residents complained of gutters overflowing on the Jansen and Mansfield models during heavy rains. Also residents complained of leaky gutters and water flowing over the stoop entrances on the Mansfield and Crestwood models. The addition of deflectors may help.

· Many areas of dead grass were noted. Sprinkler heads in these areas could not be found and may be covered with turf.

· All railings need to be treated for rust.

· Hairline cracks are present on the corners of retaining walls. The cracks are more severe on the high walls present with Jansen walkout basements.

· Additional weep hole drains could be considered for the retaining walls to relieve water build up.

Additional Comments

Reference: Reserve Study

• Important that someone with building experience look at the 3 bids.
• One disadvantage is the lack of attachments from Mason & Mason
• Regarding the 3 bids received from Mason & Mason, Thomas Downy  & Reserve Advisor, Inc., Mason & Mason and Thomas Downy are Virginia based companies.
• Do we need to go back to all 3 for extension date – Yes, definitely!

VI.              Unfinished Business

A.)  House Rule

Hugh presented an additional recommendation on using the common ground for private gathering i.e.: block parties, etc. Motion made to defer the decision until the 7/17 meeting, 2^nd and unanimously approved.

B.)   Review of Villa Owners Guidebook (Draft) and Publication Plans

Previously discussed.

VII.           New Business

A.)  July 5^th, 2006 Open Forum BOD Meeting-Special Guest Speaker

Rob ert Ashley, Shenandoah representative will be attending the July 5^th, 2006 meeting.

B.)   Financial Advisor Selection

Selected previously.

C.)  Method of Control Vehicle Speed Compliance in the Community

Decided that more speed limit signs are needed.

D.)  Other

Flyers will be placed in newspaper boxes to alert residents of Villa Open Forum meeting on July 5^th, since the communication media, Channel 11 is not operating at present.

Adjournment

The meeting adjourned at 4:28 PM.

The next working meeting of the Villa Board of Directors will by Monday, July 17^th, 2006 at 1:00PM at the Center.

Respectfully submitted,

Brenda Dudley, Secretary